NRI Mutual Funds to Invest For 10 Years

A Non- Resident Indian (NRI) is an Indian who has permanently migrated to another country for employment, education, and other purposes. Working abroad offers a unique set of challenges. Distance makes it difficult to monitor and manage your investments regularly. NRI investment in mutual fund comes as a blessing in such situations. They offer the flexibility of investing in multiple equity schemes while being able for an investor to check if they are eligible to invest in an NRI mutual fund or not.

If you meet the eligibility criteria and want to invest your savings in an NRI mutual fund, you should know a few things before making that decision.

About NRI Mutual Funds

NRI mutual funds are a great way to invest in the Indian Stock Market while living abroad. Many different types of NRI mutual funds are available, so you can choose the one that best suits your investment goals and risk tolerance.

If you are looking for an NRI investment in India to invest for 10 years, here are a few fun options to consider:

1. HDFC top 200 fund
2. The ICICI Prudential Focused Bluechip Equity Fund
3. The SBI Magnum Global Fund.
4. The Franklin India Prima Plus Fund.
5. The DSP BlackRock World Mining Fund.
6. The Kotak World Travel Fund.

These funds invest in various large-cap and mid-cap companies across different sectors, so you can diversify your portfolio and reduce risk.

How NRI Mutual Funds are Invested

NRI can invest in mutual funds through two channels-

1. The regular channel- The regular track is the most common way for NRIs to invest in mutual funds. In this channel, NRIs can invest in mutual funds through intermediaries such as banks, financial institutions, and stockbrokers.

2. The direct channel- The direct channel is a relatively new concept, allowing NRIs to invest in mutual funds directly with the asset management company (AMC). It is a more convenient and cost-effective option for NRIs, eliminating the need for intermediaries.

NRI can make investments in mutual funds through two types of accounts-

1. The Non-PAN account.
2. The PAN account.

SBNRI is an authorised Mutual Fund Distributor platform & registered with Association of Mutual Funds in India (AMFI). ARN No. 246671

Benefits of Investing in NRI Mutual Funds

There are several benefits of investing in NRI mutual funds, including:

1. Diversification- NRI mutual funds offer investors the ability to diversify their portfolios across a wide range of asset classes, including stocks, bonds, and other securities. This diversification can help to mitigate risk and improve returns over time.
2. Access to global markets: NRI mutual funds provide investors with access to international markets that may be otherwise inaccessible. It can lead to improved returns and a more diversified portfolio.
3. Professional Management: experienced investment managers professionally manage NRI mutual funds. It provides investors peace of mind and helps ensure their investments are well-managed.
4. Flexibility- NRI mutual funds offer investors flexibility regarding how they can invest.
5. Tax advantages- NRI mutual funds offer investors some tax advantages. NRI mutual funds are exempt from capital gains tax. It provides a significant benefit for investors, especially in the long term.

What are the risks in investing in NRI mutual funds?

There are several risks associated with investing in NRI mutual funds, including:

1. The fund may be invested in volatile or illiquid assets, which could cause the value of your investment to fluctuate dramatically.
2. The fund may be subject to currency risk, meaning that changes in the currency in which the fund is denominated could adversely affect the value of your investment.
3. The fund may be subject to political risk, meaning that political instability in the country or region in which the fund is invested could adversely affect the value of your investment.
4. The fund may be subject to economic risk, meaning that economic conditions in the country or region in which the fund is invested could adversely affect the value of your investment.

How long should you invest in NRI mutual funds?

The length of time you should invest in NRI mutual funds will depend on your individual goals and circumstances.

However, as a general rule, you should consider investing for at least 3-5 years to give your investment enough time to grow. Additionally, it is essential to remember that mutual funds are subject to market fluctuations, so there is always the risk of losing money even if you hold your investment for longer. 

Therefore, it is essential to consult with a financial advisor to determine your best investment strategy.

Conclusion

A healthy and happy life depends on the financial start is the bedrock for being able to save for retirement, put money away for a down payment on a house or be able to pay for his monthly bills. And while becoming financially successful is not easy, it is possible.

India has different types of NRI mutual funds to invest in for the extra duration and return horizons. Apart from being tax-free and convenient, mutual funds provide long-term returns.